Originally Posted By: rpokorny
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$295 up to 2000 sq ft. $35 per 500sq ft above 2000.
Bob Pokorny
$295 up to 2000 sq ft. $35 per 500sq ft above 2000.
Bob Pokorny
Originally Posted By: rspriggs
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Well, you folks in the NE certainly get more than we in the West. But, then again, in 1989 I was paying 10x the $ in taxes in NJ than I did when I moved to TN - NC.
I’m still paying about 1/10, out here in ID.
Russ
www.cdaInspector.com
Originally Posted By: dbowers
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$50 for a crawlspace
$50 if over 50 years old
$75 if over 75 years old
$75 for WDI
$125 for Radon
Originally Posted By: jmichalski
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| Quote: |
| Giving yourself away cheap just shows what you are, charge an equitable rate and back it up with expertise of the trade. |
Marcel, I appreciate your point of view, but start up businesses often have to attempt to gain a market share by using discount pricing.
In addition, there is a formula (though I don't claim to be smart enough to know it exactly) where a small price break will result in a disproprotionately large share of business. In other words, by pricing yourself say $20 (a number pulled at random) lower than the market average, you may get an additional 10 inspections per month (another random number). You lose $200 in discounts ($20 x 10 inspections) but you gain $2500 - 3000 in inspection fees that you did not have (depending on your discounted rate).
Again, finding this ideal pricing level is not an exact science (well, ok, it may be - but I don't know it) and is likely dependant on many variables (market, client base, your own ability to keep pace with business, etc).
I only point this out because, while I applaud the fotitude of those who place their prices beyond the top of the marketplace, this method has seemed to be effective for me. These clients then, in turn, are given my referral rewards packet and can generate more business (a marketing tool that increases in value exponentially with volume of business).
It isn't that I feel I am worth less - in fact, I believe my reports compare quite favorably to most - it is that I am seeking a strategy that will allow me to maximize my business.
Originally Posted By: rbunzel
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Joseph,
I believe the point is that one has to convince potential clients that they are delivering superior value. On one hand I agree with your logical however I know what my costs are and need to charge appropriately for my services.
Figure out how to show price shopper that you deliver superior value with your services.
You will find once you develop a group of realtors who use you, price becomes less of an issue. What you have to be careful of is distributing your price list. I know more than one HI who got trapped into maintaining low prices or realtors threaten to go to a cheaper inspector.
--
Rick Bunzel, CRI
Pacific Crest Inspections
Anacortes, WA
360-588-6956
Originally Posted By: kfulton
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| mcyr wrote: |
|  
I won't touch one for less that $325 for a dwelling of 30 - 40 years old and up to 1999 s.f.. Unless it is someone I know, I might do it for $280 which seems to be the going rate around here. I will not lower my price and maybe Jeff gets all my business, but that is alright. My main job is building Commercial and I love it. |
Marcel,
You are right on. I can't figure out why it is so cheap the further south you go. Here in Bangor 300 is the going rate, give or take a buck. When I am in your neck of the woods I shake my head and wonder how some of these guys make a living?
Originally Posted By: jhagarty
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Pricing of the services offered by our Office is commensurate with the fulfillment of the Client Expectations.
–
Joseph Hagarty
HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com
Phone: 610-399-9864
Fax : 610-399-9865
HouseMaster. Home inspections. Done right.
Originally Posted By: rcooke
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| jmichalski wrote: | ||
Marcel, I appreciate your point of view, but start up businesses often have to attempt to gain a market share by using discount pricing. In addition, there is a formula (though I don't claim to be smart enough to know it exactly) where a small price break will result in a disproprotionately large share of business. In other words, by pricing yourself say $20 (a number pulled at random) lower than the market average, you may get an additional 10 inspections per month (another random number). You lose $200 in discounts ($20 x 10 inspections) but you gain $2500 - 3000 in inspection fees that you did not have (depending on your discounted rate). It isn't that I feel I am worth less - in fact, I believe my reports compare quite favorably to most - it is that I am seeking a strategy that will allow me to maximize my business. |
Many new inspectors try to get started by giving out discounts .
Past experience has shown that about 90% of new inspectors are gone by three years.
You must make a living if you are going to last .
Lets take 20 inspections at $350:00 per inspection = $7,000:00
Operating expense at $100.00 per inspection =$2,000:00
left is $5,000:00
Now if we only charge $300:00 per inspection and get 25 inspections we get $7,500:00
Operating expense at $100:00 = $2,500:00 left is $5,000:00
now if we Charge $400:00 per inspection and get 17 inspections =$6,800:00
operating expense at $100:00 per inspection =$1,700:00 left is $5,100:00
Now who is smarter the person who does 25 inspections a month or the person who does 17 inspections a month .
You make the choice ,
I hope you are in the 10% who last in home inspection for a long time .
Been there done that, we are now the highest in our area. $375:00
Another nice advantage by charging more is we get more of the better class of home as these people usually shop for quality not so much as price.
Roy sr.
Originally Posted By: jmichalski
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Roy,
I think the problem we have is that there is no empirical data to suggest that the difference between the $300 ispection and the $400 inspection is 7 inspections per month.
My point was that there is a line where discounting does significantly and disproportionately pay dividends over the top-of-the market approach. Again, where that is - only trial and error can help me establish.
I prefer to be busy. It keeps me going and active, keeps the flow of money more of a constant, builds even more contacts and exponentially increases the effectiveness of rwards marketing. All of these work together as an approach - just one aspect taken by iteself may not be nearly as effective.
As for the class of people, I find no distinction by money paid for a home. Some of the nicest people I have ever met bought some of the smallest homes. Similarly, some of the biggest jerks I have ever encountered were purchasing the largest status symbol they could find.
Additionally, I find no correlation between price and quality. This is an adage that I believe is dying out - and fittingly so. Undoubtedly some people will always shop for labels. But, I also find that people are not afraid to comparison shop and take a deal provided they are comfortable that the quality is comparable. My job in marketing is to make them understand that my inspections are top quality, and offered at a bargain rate to entice them to book their inspection with me because I WANT their business.
Originally Posted By: charper
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2000 SF Home in Atlanta Area 275.00. - 300.00… Average appraisal $ 350.00
Originally Posted By: rcooke
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| jmichalski wrote: |
| Roy,
I think the problem we have is that there is no empirical data to suggest that the difference between the $300 ispection and the $400 inspection is 7 inspections per month. . |
I listened to other inspectors and they told me it also worked for them .
I do hope you can last to find out that you could have got more money and worked less.
A good read that again confirms what most sucessful inspectors are doing.
http://www.nachi.org/imageis2005.htm
Another good read go here and up two letters .
http://www.nachi.org/bbsystem/viewtopic.php?p=189513#189513
Roy Cooke sr A Happy NACHI Inspector
Originally Posted By: rwashington
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$290 for 2000 sq ft home.
Originally Posted By: troberts1
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Hi bill,
Do you do an renter/landlord inspection before the tenat moves in and then after the tenant moves out? If not how do you know what damage the tenant has done, and what was there before they moved in? I have rentals and was just wandering. I belong to our local loandlord assocation and have not thought of providing this service. Great Ideal. 
Originally Posted By: tallen
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$249.00 to get out of bed.
<1500 sq.
Originally Posted By: fduemig
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$340- <2200 Sq Ft
$365- 2200 - 2600
$390- 2600 - 3000
Fred
Thanks Len 
Originally Posted By: lungar
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Hi! Fred;
Do you always go down on your price if the house is bigger ???
Look at your last price Haaa Haaaaaaaa !!!
Regards Len
Originally Posted By: jmichalski
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Roy,
I think it is clear that you and I will not agree on this. Anecdotal evidence supporting both sides abounds. I think that for a start-up though, it is paramount to get out of the box fast, and lower prices have helped me accomplish that.
You will note that the success stories of top-of-the-market pricing are not from guys who are new. If this method works for you, then more power to you. I tend to agree more with the marketing philosophy advocated by RR regarding rewards marketing and volume, since my goal is to grow my business and (one day) be busy enough to need to hire employees.
My goal is NOT to work less, it is to work as much as humanly possible. I know that my days on a ladder are limited, but my days running a business are not - I am building towards that end. Fewer inspections at higher rates does not serve that goal, especially after I scale back my personal involvement in inspecting, leaving it to less experienced hands.
Originally Posted By: dkeogh
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$369 up to 3500sqft $100 for every 1000sqft
$75 for termite and $139 for radon.
About $350 for apprisals
Joseph, I think you should take some business class my friend. Service companies should never compete on price they should compete on service. 
Also did you know that you have the same company name as Sherlock Homes in Spring City, PA
Originally Posted By: aparent
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1999 sf Standard Inspection incl. WDO = $400
Tony Parent
Abode Specialist Inspection Services
Tacoma, WA
Originally Posted By: jmichalski
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Daniel,
I have taken several business classes. I will not try to convince you that there are price shoppers in the service industry, nor that a discount pricing strategy as part of a comprehensive marketing strategy can be effective.
To say that service companies should "never compete on price" is to ignore an important potential marketing strategy, in my opinion.
Internet service providers compete on price. Telecoms compete on price. When service companies should not compete on price is where there is a corporate giant who can use discount pricing to crush the competeition by sustaining losses over a period of time until most or all of the smaller competition is eradicated. I do not find that this case parallells our industry.
I also compete on quality of service - that's how I maintain relationships with the Realtors who consistently refer me. They like the quality of service and report I provide.
It's also how I get referrals from previous clients. They are thrilled with the inspection they got and - thanks to rewards marketing - are eager to refer their friends.
Price does not equal quality, and I find that this misnomer is no longer as prevelant in consumer's attitudes. For those who are status shoppers, there are higher priced inspectors who will benefit from their pricing strategy as the most expensive. As I indicated before, I want to be busy and I am seeking constant volume, as that enhances the power of my other components of my marketing strategy. My pricing is helping me towards that objective.
Of course, there is no way to know how many more or fewer inspections I would have at your prices, but I would suspect that it would be less (since you have the benefit of longevity, and I am seeking a market share as a relative newcomer.) I have set my prices to cover my costs and turn a profit at the number of inspections I project to reasonably perfrom each month. As long as my prices meet these financial needs, they are appropriate. That is not to say they will not ever go up, but such increases will reflect carefully considered market impact and financial needs.
As for the other "Sherlock Homes" - there are several. All I can do is register my ficticious name and incorporate with the state. I registered legally as a corporation with the state and would not have been able to do so if anyone else held the rights to the same entity name I am using. I am sure there is some technical difference (an "Inc" or "Inspections" vs. "Inspection Service" or something like that.)
As I have had no Realtor tell me about that one, I can only assume we are travelling in very different circles. The one I most commonly get confused with is in NE PA, and even that is a rare occurrence.